Liberty in Tie-Up Talks with Virgin Media

2/5/2013 9:44AM

Liberty Global is in discussions with Virgin Media, which has a 40% share of the U.K. market. Heard on the Street's Renee Schultes looks at how a tie-up would work and what competition would be like for the U.K.'s largest cable operator, BSkyB. Photo: Getty Images

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... Google is in talks ... with those in need of the UK will be sold this has been looking not only one sees that that the ... budget ... also it means for the whole of the U K cable market ... Renee ... let's look at the proposed deal for us Abby what exactly are these talks about ... so then on sale the decision saying that its average a meteor is in discussions about the possible transactions believed it could be worth ... somewhere around to more than twenty billion US dollars ... and I'm pretty in a deal like this is going to say that if it sees strategy of ... consolidating cable assets around Europe ... and that it also comes off Tenet and ... ABT failed to do a deal to buy out the minorities and all but one of its ad ... it says that CJ is in Europe which was then Belgian operator called Telenet ... so basically it's got intensely something like two to three billion ... US dollars that I in cash ... to spend that might not originally thought it had ... this is the biggest being that this is expected at the gym is faced with a number True cable upgrade to the UK is not a BNP studies of a one ... bridges and two ... Yeh that's right that that meant Bridgend theory has that opportunity to continue taking said ... and I we are seeing that said lately in and pay TV ... was so ... mean basically the region has that coverage that will cover severance costs ... fifty two cents the UK ... but it's actually growing and subscribers on a net basis in pay TV ... and that of pasta clip than than the sealer or sky ... and pencil sale Holdings share in superfast broadband which is another battleground in the UK at the moment ... common that's despite said ... a big effort from the seats it to rent out their servants Basseley he leads is seen as a relatively good growth position as it is ... important point out ... that ... news Corporation of which of course the movement is chairman of ... the loans on ... the will Street gentle ... giants ... isn't she has taught ... how would the budgie ... make a return on its investment ... wet and and say this in and is in these kind of cross border the cable deals tend to be pretty minimal although I'm sure ... that it's a good idea for me as a dad recently with selling that that there are some savings around procurement and productive elements ... and tells me they're not can be very large is the isthe feeling ... ok aam was also a stay has of course that that that that that Chairman John Malone on TXT look back with a group of Virgo when the cost but now ... it looks as if they could actually be competing against each other ... I get an immense interest bearing pity Virgin Media and sad and scary to go ahead said subprime even sensing the Samoan to fix it could make things interesting but ... I don't see that said I'm a that is whole strategy around here is very much about raising prices that ... have been a complex the that they can coming to the U K what has become a very rational and ... a market where it will keep essences of actually taking up prices ... and lower sums up the price to wear them because of the end of the more ... continuing to eat away at said at the TV stand I ... use it I mean of course is consisting of the clothes that Virgin Media nobody lives but is this is invested with Richard Branson ... but I see now the Budget Grubel who owns three percent of Virgin media's right yet mean it's understood that he has any power